The stablecoin market has surpassed the $200 billion mark in total market value for the first time as demand accelerates and adoption increases. According to CCData and DefiLlama data, stablecoins have increased by $10 billion in just two weeks, with the market value exceeding $190 billion in the 2022 bull cycle.
Stablecoins Break Records
Stablecoins are cryptocurrencies typically pegged to the US dollar and serve as an important piece of infrastructure in the cryptoasset space. It is used as the main source of liquidity in crypto asset trading on stock exchanges and enables value transfer on blockchain technology.
Throughout 2024, crypto markets have emerged from a difficult downturn and demand for stablecoins has increased steadily. Especially after Donald Trump’s election victory last month, demand accelerated significantly and investors concentrated on cryptocurrencies, resulting in a growth of $30 billion.
Institutional Adaptation
The supply of Tether (USDT), the most popular stablecoin, increased by 12% in a month to $139 billion. DefiLlama data shows that USDT was accepted by Abu Dhabi Global Market (ADGM) this weekend and the issuer aims to expand its services in the Middle East region.
Circle’s USDC, the second largest stablecoin, also increased by 9% to nearly $41 billion during the same period. Circle has partnered with the largest crypto exchange, Binance, to increase USDC acceptance around the world.
The rise in crypto markets is driving the growth of stablecoins not only in crypto trading pairs but also in areas such as payments, remittances and savings. Fintech Fund partner Nik Milanovic highlighted the rapid increase in stablecoin transactions on transfer apps.
Tokenized products are also gaining popularity by offering fixed returns to investors.
“Regulation for stablecoins will attract the attention of major players in the market and support growth.” – Bitwise Analyst
The stablecoin market is expected to reach $400 billion in 2025. According to Bitwise’s prediction, the US Congress’ passage of stablecoin regulations will be one of the main drivers of this growth.
Paypal’s PYUSD stablecoin and the stablecoin integration of fintech applications and their increasing role in global payments are among the factors that will contribute to the future growth of stablecoins.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
